Baozun the latest to complete dual listing in HK
Shanghai-headquartered brand e-commerce solutions provider Baozun has become the latest company to complete dual listing in Hong Kong.
"We remain confident about the demand for brands' flagship online storefronts as e-commerce is playing an increasingly important role in everyday life," said CEO Qiu Wenbin.
NASDAQ-listed Baozun is 14 percent owned by Alibaba Group Holding and intends to expand to full channel operation capacity to connect online and offline resources following the listing.
The secondary listing raised HK$3.32 billion (US$474 million) with sales of 40 million new shares at an offer price of HK$82.9. Shares closed at HK$84 on Tuesday.
The company joined a string of secondary listings by overseas-listed Chinese Internet companies such as Alibaba, JD and NetEase.
Baozun expects gross merchandising volume for the third quarter to grow by at least 15 percent year-on-year.
In the second quarter net income was 146 million yuan, adding 73.4 percent from the same quarter last year.
It will also use the proceeds to enhance its digital marketing and fulfilment capabilities, potential strategic alliances, investment in technology and innovation, and potential merger and acquisition opportunities.
Domestic consultancy iResearch expects sales through online brand flagship stores to enjoy an annual growth of 24 percent over the next five years to reach 2 trillion yuan.
Private equity and venture capital investments in the telecommunications, media and technology industry recovered in the second quarter after a fall in the first, according to a PwC study.
The impact of COVID-19 caused a steep fall in the number of exits to 107, the lowest level since the second half of 2018 but IPOs remained relatively resilient.
There were 38 IPOs in the TMT sector in the first half, more than a third of the total exits despite a fall of 42 percent from the second half of 2019.
The IPO drivers include the development of China’s STAR market, followed by the registration-based IPO system on ChiNext and the continuous return of foreign-listed Chinese firms.